Core consumer prices in Japan fell 0.3% in January from a year earlier in the fourth straight year-on-year decline, the government said today, indicating mild deflation was still haunting the world's second-largest economy.
The drop in the price index, which is closely watched by the central bank in setting policy, was in line with forecasts by economists whose estimates had ranged between -0.5% and -0.2%.
The core prices, which exclude volatile fresh food costs but include energy prices, decreased 0.8% from the previous month, the Ministry of Internal Affairs and Communications said.
Meanwhile, core consumer prices in Tokyo, a leading indicator of nationwide trends, fell 0.5% from a year earlier in February following a 0.5% fall, the ministry said.
The year-on-year decline, which was in line with a 0.5% drop expected by economists, showed the country would remain troubled by deflation at least in the short term. From the previous month, the Tokyo prices fell 0.1% in February.
